Record 3Q revenue for Aptar
CRYSTAL LAKE – Plastics products maker AptarGroup reported record third-quarter revenue Wednesday along with strong quarterly earnings per share.
AptarGroup’s third-quarter reported sales increased 6 percent to $624 million, up from $590 million a year ago. Third-quarter product sales increased in the company’s Home + Beauty segment and Pharma segment, up 4 percent and 7 percent respectively. However, sales in the Food + Beverage segment dropped 1 percent. Changes in currency rates accounted for 2 percent of the sales growth for the quarter.
AptarGroup President and CEO Stephen Hagge said the company was pleased to report the record third-quarter sales but acknowledged some challenges in weaker U.S. markets.
“[Wednesday] we reported a good quarter for Aptar with a record quarter revenue of $624 million and strong earnings of 70 cents per share before restructuring charges,” Hagge said during a Thursday conference call. “We were able to achieve these results even though we experienced some challenges in the quarter.
“We continue to see good growth in all regions other than the U.S. The timing of passing through resin cost increases had a negative impact on our bottom line, and we experienced negative foreign currency transition affects, primarily related to our operations in Latin America.”
The company reported third-quarter earnings per share rose 8 percent to $0.67, up from $0.62 in the prior year. Year to date, AptarGroup’s reported sales have increased 7 percent to $1.88 billion, up from $1.76 billion a year ago. AptarGroup reported earnings per share of $1.98 compared with $1.86 a year ago. Hagge said AptarGroup’s business diversity continues to be a long-term stabilizing factor for the company, as each of its segments’ core sales grew over the previous year.
“Given all that we’ve encountered, I’m pleased that we were able to achieve record third-quarter sales and grow earnings over the prior year,” he said.
Looking forward, Hagge anticipates continued sales growth despite weak segments of the U.S. market.
“As we look ahead to the fourth quarter, we expect core sales for each of our segments to increase over the prior year,” Hagge said. “However, we anticipate that our earnings will be negatively impacted by the continuing soft conditions in the U.S. market served by our Beauty + Home segment. Also, Europe continues to recover, and in the emerging markets we expect to see continued good growth across the various markets we serve.”
AptarGroup makes dispensing systems for the beauty, personal care, home care, pharmaceutical, food and beverage markets. It is headquarted in Crystal Lake and is one of the county’s largest employers. It has manufacturing facilities in North America, Europe, Asia and South America.
AptarGroup’s stock closed Thursday at $64.16, up 60 cents or nearly 1 percent.